Democrats in Congress moved on Tuesday to overturn changes to the federal Public Service Loan Forgiveness program that they said were driven by politics and could deny relief to borrowers who qualify for the benefit. The challenge targets a Trump administration rule that would take effect in July, reshaping how the Education Department determines which employers can participate in the PSLF program.
At the heart of the dispute is a new provision that, according to the Associated Press, would empower Education Secretary Linda McMahon to kick employers out of PSLF if she decides their work involves a “substantial illegal purpose.” The program, as described by the AP, cancels the remaining balances of loans for workers who perform qualified public service jobs after making roughly a decade of payments.
Supporters of the PSLF resolution say the rule’s wording is too broad and could be used to exclude certain employers, including those connected to groups that support undocumented immigrants or transgender youth. They argue that borrowers who work for schools, public hospitals and legal aid organizations could be affected by the policy shift if their employers are removed from the program.
Democratic Sens. Tim Kaine of Virginia, Kirsten Gillibrand of New York and Cory Booker of New Jersey introduced a resolution in the Senate on Tuesday to reverse the changes. In the House, another trio of Democrats—Joe Courtney of Connecticut, Alma Adams of North Carolina and Scott Peters of California—introduced a similar measure aimed at overturning the rule.
The lawmakers who introduced the measures characterized the Education Department’s rule as an effort to intimidate and punish certain organizations. They also said the change could leave some borrowers without the relief they had been promised under the existing PSLF framework.
Nicholas Kent, the Education Department’s higher education chief, rejected the Democrats’ framing. In a statement, Kent equated the congressional effort with “standing up for criminal activity,” arguing that the administration’s changes are meant to stop taxpayer dollars from subsidizing organizations involved in terrorism, child trafficking and child mutilation procedures, which he said do irreversible harm to children.
Kent said the Education Department would enforce the new rule neutrally, “without consideration of the employer’s mission, ideology or the population they serve.” He added that the policy would function as a reform while the congressional action is pending.
While Democrats may be able to move their resolutions toward a vote, the Associated Press reported that passage is unlikely.